Insurers and hospitals say the Centers for Medicare and Medicaid Services (CMS) should include in a recently-proposed rule some new requirements for pharmaceutical companies, Modern Healthcare reports.
Organizations in response to the rule suggested that eliminating safe harbor for Medicare Part D and some Medicaid drug rebates in favor of point-of-sale discounts would fail to push drugmakers to cut prices.
“Without including provisions requiring or incentivizing drug manufacturers to lower list prices, those same companies stand to see increased profit margins if rebates are removed,” the American Medical Association stated.
According to the report, Catholic Health Initiatives suggested the Department of Health and Human Services should eliminate the safe harbor rule altogether and replace it with policies focused on boosting competition and incentivizing generics and biosimilars.
To read the full report on Modern Healthcare, click here.